Which one of the following is a potential problem with management's communication of financial information that causes third parties to desire the independent auditor's assessment of the financial statement presentation?
A)Complexity of transactions affecting the financial statements.
B)Lack of criteria on which to base information.
C)Remoteness of the user from the organization.
D)Both A and C.
E)Both A and B.

Question

Quizplus · Accepted Answer

Complexity of transactions and remoteness of the user from the organization are both reasons why third parties seek independent audits to ensure accurate financial statement presentation.

Which One of the Following Is a Potential Problem with Management's